As human beings we all crave for ‘normality’ but we need to accept that life as we know it will not be the same in the aftermath of COVID-19. In the last months many aspects of our life, at work and at home, had to adapt to changes that were brought about by the pandemic. One industry which will certainly have to continue to change and adapt to these changes is the hospitality industry.
Royal Caribbean Cruises chief executive Richard Fain stated last year that the pandemic will change the way we do things. He explained that as had happened in similar catastrophic events in the past the “new normal” will eventually in time become our normal, that is until another global calamity strikes again. “Travel and tourism will grow,” he said, “not by reverting to what it was, but by adjusting to a world where all activities, everything we do in the world, will have changed.”
Travel is an expression of freedom and if there was an activity that has been curtailed in these times it is the freedom to do what we want, including travel. What will certainly be different is that we can no longer take for granted our carefree attitude towards travel. Before the pandemic the world had reached a peak in travel driven by several factors, including cheaper flights, more free time, an overall better standard of living, and the ability to work remotely. However, this carefree traveller will possibly not be with us anymore. Welcome to the conscious traveller.
We can no longer take for granted our carefree attitude towards travel
For the conscious traveller each trip needs to be an experience. During the pandemic the traveller realised that one cannot take travel for granted and has today learnt to appreciate that more (travel) was not necessarily better. A cheap price on its own will no longer encourage this traveller to get on to a plane, and other motivating factors will come into play.
The immediate aftermath of COVID-19 is expected to see an explosion of pent-up demand for travel. Some within the industry claim that travellers will be eager to fill up planes faster than the airlines can fly them. Travellers will want to make up for all the lost trips in the last months. Suppliers, devoid of any business for some 18 months by then, will want to partake in a bigger share of this demand and many will, in a misguided strategy, slash rates and prices in an attempt to get a bigger share of this travel bonanza. And for a few months, maybe even a year, everybody will be happy.
After travellers would have ‘quenched’ their yearning to travel again, some realities will start to hit home – savings may have been depleted during the pandemic in view of lower income, employment is still picking up slowly, economic growth could be inconsistent, purchases of necessary items that had been pushed back are now critically required, the benefits of loans moratoria would by then have fizzled out; all factors that may affect negatively disposable income.
And this is where the traveller of tomorrow becomes more conscious of how he travels. Travel may now be defined in economic terms as a ‘comfort good’; it is a good or service that is useful and gives you enjoyment, but it is not necessary.
Decision making may take longer when planning a trip and the frequency of trips that people will take may possibly become less. Travellers will be keener on trips offering them the opportunity for new experiences and activities. Those destinations that offer authentic experiences would therefore do well to use these experiences as key USPs in their communication and marketing plans.
Hotels that offer a ‘local’ experience may find more favour with our new conscious traveller. It is expected that social distancing would still dictate the traveller’s decision where he travels to, and where he stays, and many predict that smaller hotels and home rentals may become more popular. A recent Expedia study revealed that within Europe, 43 per cent of the respondents surveyed claimed that they will choose to travel to less populated destinations.
Price, although still important, will not be the single most important determinant and ‘value for money’ may become more than just a statement. And while value will be reflected in the need for better quality, in many cases the value will be attributed to superior experiences. Travellers will also recognise that climate-friendly and socially acceptable business practices are to their benefit and could even agree to pay more for ‘pandemic-compatible’ services.
Suppliers would need to adjust to the new realities for sustainable long-term gain. The scenario will continue to change and evolve as the global economic crunch that is expected to eventually follow the pandemic will define the future trends. And whatever happens it is highly unlikely that we will be able to replay the tourism year from 2019, no matter how much we would love to: the reset button has been pushed.
Joseph Galea, former MTA director of international marketing and former acting CEO at Air Malta